AWS Ecosystem Fuels Digitalization Across Asia Pacific
The digital transformation of industries in Asia Pacific is increasing cloud adoption and demand for professional and managed services related to AWS, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens AWS Ecosystem Partners report for Asia Pacific finds that rapid economic growth has led to rising investments in efficient and scalable business solutions, often based on cloud services and technologies. AWS has expanded throughout the region, spawning an ecosystem of providers that understand local markets’ technological maturity and business and regulatory requirements.
“Asia Pacific is a model of rapid learning and innovation at scale,” said Michael Gale, partner and regional leader, ISG Asia Pacific. “Its massive talent pool continues to support large-scale adoption of cloud services and cloud-native technologies.”
Digitalization and cloud migration are accelerating in manufacturing, finance, healthcare and other industries, including the public sector, ISG says. Companies are no longer using the cloud solely to cut costs but also to modernize IT and business functions. This trend is increasing adoption of managed services, serverless technology, analytics and AI.
Enterprises are using AWS as they modernize legacy systems by migrating to microservices architectures and containerized environments, the report says. Many are adopting automation and DevOps practices, including continuous integration and continuous deployment (CI/CD), to streamline their AWS operations. Demand for industry-specific AWS expertise in the region is rising.
The cloud is also shaping enterprise strategies around SAP, which has a major presence in Asia Pacific, including in manufacturing, financial services and the public sector, ISG says. Organizations are quickly moving their SAP applications to cloud platforms, especially AWS. Though SAP’s RISE with SAP initiative encourages integration with hyperscale cloud providers and offers the benefits of a full AWS suite, many enterprises are choosing a hybrid approach that keeps crucial SAP functions on premises, the report says.
The growth of the region’s AWS ecosystem is taking place against a backdrop of increasing hybrid cloud and multi-cloud adoption, ISG says. Companies want to realize the benefits of different platforms and avoid vendor lock-in. Cloud spending is also a rising concern, so clients are choosing AWS managed services providers with strong FinOps capabilities.